The Financial Commission Reports Rise in Amounts Sought from Members and HNW Complaints Along with Key Metrics for 3Q 2024

The Financial Commission / Commission News / The Financial Commission Reports Rise in Amounts Sought from Members and HNW Complaints Along with Key Metrics for 3Q 2024

The Financial Commission, a leading independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum announces its latest operational metrics for the third quarter of 2024. The organization experienced a drop in many key metrics attributed to the summer slowdown in trader activity, including a decrease in amounts sought, awarded, average complaint values, and others. The forum continues to provide a quick and efficient service, with complaints being resolved on average in just 6.6 days as part of its quarterly Complaints Digest. 

As part of its founding core principles to protect traders from possible scams, Ponzi schemes, and fraudulent activities online, The Financial Commission placed over 15 new websites on its Warning List.

Furthermore, the forum added 3 new broker members during the quarter to bolster its membership ranks.

Key highlights for 3Q 2024 vs. 2Q 2024:

  • New filed complaints slowed by 8% 
  • Total resolved complaints decreased 7%
  • Non-member complaints dropped 50%
  • Average complaint values down 40% to $7,672
  • Compensation sought from all brokers fell 43% to $2.625M
  • Compensation sought from members jumped 70% to $1.784M
  • Average resolution times slowed by 38% to 6.6 days

Quarterly Comparison

Financial Commission 3Q 2024 Complaints Summary

Key Takeaways

  • Lower inbound complaints and other metrics due to the summer slowdown 
  • Significant rise in amounts sought from member firms
  • Growth in HNW and mid-value complaints: 20% and 5% respectively
  • Complaints resolution times slowed, yet continued to be quick 

Conclusions

The Financial Commission witnessed a continued slowdown in new complaints from traders amid the summer slowdown and decreased trader activity. Specifically, the organization experienced an 8% drop in new complaints filed, while the total number of complaints resolved in the quarter fell by 7%. At the same time, total complaints amounts sought and awarded and average complaint values all fell by 43%, 36%, and 40% respectively. In complaint categories, financial-related complaints continued to dominate for 3Q 2024. Complaints valued at $500-$999 also jumped 5% during this period, while HNW complaints valued at above $10K grew by 20%. 

During the period, the Dispute Resolution Committee (DRC) resolved complaints slower than in previous quarters, with 6.6 days in average dispute resolution time.

About Financial Commission

The Financial Commission is an independent external dispute resolution (EDR) organization for consumers/traders who are unable to resolve disputes directly with their financial services providers who are members of the Financial Commission. The Financial Commission initially set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading electronic markets such as Foreign Exchange, and then expanded into CFDs and related derivatives, in addition to certifying technology platforms used for trading.

For more information please contact us at [email protected].

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